Quick take: Gold prices gain some ground; Jewellers slide

KUALA LUMPUR: Jewellers Tomei Consolidated and Poh Kong Holdings Bhd fell in early trade Tuesday although gold prices gained some ground after falling on Monday.

Tomei shed 7.61%, or seven sen to 85 sen while Poh Kong fell 6.78%, or six sen to 82.5 sen.

Other gold-related stocks such as Bahvest Resources Bhd fell 2.5 sen to 49.5 sen and MUI Properties Bhd declined one sen to 22 sen.

Gold prices got hit earlier with Covid-19 vaccine news as demand for safe-havens disappeared as investors rushed to value stocks.

Spot gold rose 0.5% to US$1,871.81 per ounce by 0136 GMT, Reuters reported.

It fell to US$1,849.93, its lowest level since Sept. 28, on Monday after U.S. drugmaker Pfizer Inc said its experimental Covid-19 vaccine was more than 90% effective, based on initial trial results.

OANDA senior market analyst Edward Moya said gold prices got hit with a vaccine right hook as demand for safe-havens disappeared as investors rushed to value stocks.

He said Pfizer’s vaccine news was so positive investors had to overlook the short-term headwinds that are hitting the economy.

“The next six months will be a tough time for the US economy as small businesses will not be able to survive the return to lockdowns and restrictive measures.

“Gold appears very vulnerable, but the short-term stimulus trade remains intact as central banks will increase accommodation over the next several months,” he said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

gold , Poh Kong , Tomei , Edward Moya


Did you find this article insightful?


100% readers found this article insightful

Next In Business News

Higher retail margin lifts AEON earnings in Q3�
Prestar’s 3Q net profit jumps 132% to RM5.2mil
Builder IJM sees encouraging outlook after improved Q2 results�
KLCI bounces back, Public Bank, Telekom advance
Malaysia reassures on supply after Top Glove shuts factories
Hong Kong shares track global rally on improved economic outlook
Economy on recovery path as leading index rose 8.6% in Sept
Sime Property posts 3Q pre-tax profit of RM92.6m, excluding impairments
Sunway Malls bucks the trend with 200 shops opening despite pandemic
Maybank's web and app connection issue solved

Stories You'll Enjoy